Calling South Africans - Transferring Funds out of SA

karibi Active member

97POSTS

Yesterday

We have just sold our home in SA and now wish to transfer the funds out of South Africa, not necessarily to Mauritius. I appreciate that I need to jump through the hoops with SARS to get an AIT (Approval of International Transfer) Pin. However if I ignore that challenge should I transfer the funds out as:

(a) ZAR and convert them at their destination

(b) Convert them in South Africa to USD or GBP, USD has been suggested as it is more liquid.

Which FX brokers have people used? Are there any I should avoid. The following have been suggested:

(a) Investec

(b) Currencies direct

Basically I have Scottish blood in me and I am tight. I have never believed that everybody should eat a little, especially if it is my money they are eating, hence advice sought. Thanks

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Shakil Nuckchady Member

14POSTS

18 hours ago

Hi Karibi, I completely get it. Let's cut the fluff and save you as much of your money as possible.

1. The AIT PIN (Don't even think about skipping it)

You mentioned "ignoring" it – scrap that idea. Since late 2025, banks are legally barred from sending your funds without SARS clearance. If you're still a taxpayer, you need the AIT TCS PIN. If you've deregistered, you need a Manual Letter of Compliance (MLC).

It takes up to 21 working days (plus SARS' December shutdown). Apply today and gather your sale deed and attorney statements now to avoid delays.

2. The Currency Choice (ZAR vs USD/GBP)

Do not send ZAR abroad to convert later – you'll lose out on retail rates.

Convert in South Africa before it leaves. Between USD and GBP, pick USD. It has tighter global spreads (0.1–0.3% vs 0.5%+ for GBP) and fewer intermediary bank fees.

3. The Golden Rule (Avoid High-Street Banks)

Whatever you do, do not use FNB, Nedbank, Absa, or Standard Bank for this. They hide a 2–3% markup in the exchange rate. On a property sale, that's easily R50,000–R100,000 eaten for nothing.

4. The FX Brokers (Investec vs Currencies Direct)

Currencies Direct: Pure specialist. No transfer fees, just the spread. Award-winning, great reviews, and they give you a dedicated dealer who can negotiate.

Investec: Full-service private bank. FX is a side-product for them. Reviews suggest their fees are higher, and they charge service fees on top.

My take: For a one-off transfer, Currencies Direct is the tighter choice.

Worth a look: Currency Partners – they actually help with the SARS AIT paperwork for free alongside the transfer.

5. Your Action Plan (To keep every rand intact)

Step 1: Lodge your AIT/MLC application with SARS immediately.

Step 2: Open accounts with Currencies Direct and Currency Partners.

Step 3: Ask both for a "live dual quote" – ask for the final net amount in USD and GBP side-by-side. Pick the one that puts the most money in your pocket (likely USD).

Step 4: Ask about a Forward Contract. If SARS takes 3 weeks to approve you, you can lock in today's exchange rate so a sudden Rand rally doesn't ruin your day.

Don't let the banks eat your profit. Go with a specialist, compare the hard numbers, and you'll sleep better.

Best of luck –

karibi Active member

97POSTS

17 hours ago

@Shakil - Thank you, very insightful. Clearly you have the battle scares to prove it. This all aligns with my own research but had failed to identify Currency Partners. The 2% being charged by the major banks would make we feel very unwell, almost as bad as dealing with estate agents. Once again thank you for your help.